until then, i am matt welch and good night. . lou: gd evening, everyone. russian president vladimir putin putting his military on high alert, ordering up to 150,000 russian troops stationed along the ukrainian border into a russia calls battle rea drills. consisting of 41 warships, two smarine 10 guided missile ships. several anti-submarine warfare votes. the defense minister claimed the movement of those russian forces

is purely coincidence. insisting that the military movement and wargames were prscheduled. and obama responding. secretary of state john kerry warned russia that a military action in the ukraine wouldbe a grave mistake. >> russia needs to be careful in the judgments that it makes going forward here. we are not looking for confrontation. but we are making it lear that every country shod respect the territorial integrity here. the sovereignty of the ukraine, russia has said it will do that. and we think it's imortant that russia keeps its word. lou: the russia counterpar fireback. warng the west and in sourcing decisions upon the ukrainian government. >> t isangerous and counterproductive to try to force upon the ukraine the

choice that you are with us or aginst us. it has toe part of a global ropean family that is meaningful of the term. lou: the permian pill in slow region tthe opposing groups, and some cases people getting killed. twpeople were kied in the demonstrations and riots in more than 30 hospitalized. drawing the ukraine back into the russian sphere. and it's not lely gog to allow this to go without a fight. joining s is lieutenant colonel bill collins. it's good to have you with us. and as we were watching this unfold, we have secretary of

state john kerry making what i consider to be an unexpectedly severe and stern warning tt i not certain that he can back t. what is your reaction first, if we may. >> for some it's great to be with you. i appreciate being invited. i think that president vladimir putin has lahed off whatever secretary john kerry had to say. i don't think the russians think for one minute that this administration is going to do anything at all if they make a mo on the ukraine. having said that, i think that vladimir putin is a smart guy. he's not going to do anything i the short term it really damages his stading. he's riding the crest of a wave right now. there were no incidents. he is really he guy who is moving forwardith their nuclear weapons and everything is on his ride right now. and i don't think that he wants to damage that by using oars at this time, but heis an old kgb

operative and that i will take whatever time it takes in my judgment re-create what happened in georgia when back in 2000 a russian troops went into two of the provinces because ssians and their, at the russians were being treatened. lou: s setting the stage for precisely that with his words. i thought, fankly, his use of the expression of the global community, talking about the ukraine membership therein of the european community as if russia is the head of that particular tble. an artful language and tone and presidentlamir putin arully has not saida word even as president obama in the white housesecretary kerry are making some bellicose statements

that again, i am not certain that this president is prepared to act p. >> i don'tthink we can back ay of it up at all. i think at there is no military situation under which we wou probably use force. the vladimir putin doesn't want to damage the repution and anding that he has by introducing those forces. there's nothing wrong with having 150,000 troops on the border as a demonstration of force and a reminder to those in the ukraine who are paying attention, that in the past he has used force one he felt necessary. unfortunately over the long term we will see them divided into two distinct countries and regions and one of thembeing part of this and they are not ing to let that go way. the rest of the area that is down there, 60% or more. and then we will see the other attributes and all th people who are demonstrating to get the president out towards the eu.

lou: your son is serving a fifth ur in afghanistan. general martin ddmpsey they're makingsome exceptional remarks today talking about the importance of u.s. forces even as his commander in chief. think they're rea for this. is it not? >> yes, it is. i feel for all of those men and women over there that are still engaged in a fight and are living in this edge of uncertainty particularly with the possibily of afghan forces siding with t taliban and turning her people. these are difficult things to be named. difficult for the troops to be hearing this. i think hearing this. i could think at the end of the day there is a lot of talk in washington about when the new president gets to afghanistan we will bable to work stus reports and an agrment and

keep our security rangement going. i'm not sure that is what the white house wants. the president really wants to get all of our peopleout of afghanistan and i think that we are going to pay the penalty in the long run. lou: we thk you for being with us. tensions flaring the ukraine. president obama focusing on domestic politics and his agenda. the president going to a restored train depot in minnesota to ask coness for $300 billion to update the natios highways andbridges and rail systems and to make his case, well, he upped his 800 billion-dollar stimulus practice. >> it was renovated and expanded with the help of what we call competitive grants that we created as part of the recovery

act. also known as the stimulus which actually works. >> incredible. still campaigning for an approval on th simulus package and we are still waiting for that 5% unemployment rate that obama promised along wth the stimulus in e. and a new report shows the atf agents have lost track of guns over the past five years and apparently some leaving them in bathroom stalls, on top of cars, and engaged in a six-hour standoff outside an apartment complex that ended whn they learned one had been at home. we are coming right back. the tax man and ways and means

committee chairm ave camp. congressman mike turnejoins us next. ceo and chairman richard smith oins us

lou: on wall street, stocks were modestly higher. the s&p up, the nasdaq was four. crude oil is up 76 cents in gold prices down $15 settling at $13.28. the ten-year down 2.67%, staying within a very stable range. target shares up 7%.

retailerand its data brch, costing 61 millionand could extend also. and carl ichan being blamed for dysfunctional leadership in a new letter to shareholders. has he overstepped? some would say perhap yes. we will find out. be sure to listen to my financial reports the three times a day on thee aol radio network for all of the biggest market and business news. chairman dave camp revealing his proposal that the republican leadership is trying to downplay d distance themselves from that pla. congressman mike turner is a member of the house oversight and armed rvices committee. as indiscreet have youith us. when we start with tax reforms.

>> he has worked very diligently to put this together. we need to make sure that we have a competitive tax code. lou: you guys really want to be on record wh this important midterm election calling for the deductibility and dectibles and i mean this is toxic stuff but he has put out there.

>> everyone knows that it s exactly as he has said and that requires a debte that ill have to go across the country. everyone knows that weneed tax reform and that certainly is hs way to start the debate. >> i think i might agree with you more if i would've had the experience of lower taxes as well as disapinting jobs growth. >> regardless your opinion, our tax code is abysmal and we need to start having a debte.

u: you've done not for five yea. the administration has no proposal. lou: i have as much hesitation with the use of the word reform. lou: let me talk about the debate and the discussion. does the republican party really want to eliminatdeductibility on mortgage interest to

illuminate this ontate and local income taxes which will affect all folks out there paying tax is common not just higher income earnings? and this is a time that we need to be cutting. >> you can't have a proposal and i do think it is. i believe you believe tha. but we have to have this discussion. lou: i appreciate your issue, but it's part of this and if you persist in this, you're going to blow a good opportunity come november. that is just one journalist's

opinion. >> this is an important debate. i think that therere lots of issues that are important. let's start wwth the debt. let's start with the incredible deficit and the size of government. >> we have a tax problem and a spendi problem. and it basically came to a grounding al. lou: what are you going to do about lois lerr? dirty have the attorney general in contempt. what are you going to do a former senior irs offcial?

he's basically told you guys to buzz off. i have a bill, hrr 1950 that iminalizes this action. lou: retroactively? >> the questio is what are you going to do about lois lerner who has told you guys to buzz off. >> we are going to make certain that there are two aspects of the story are told. hold people accountable and find out who did this. and you move forward with the legislation that holds people accountable if it haapens again.

and i think the american people are shocked at what has occurred at the irs that the administration is doing nothing and we are going to work diligentlto hold these people accountable to make re this doesn't happen again. lou: no one is a bbgger fan of darrell issa than i am. and i think you know that. you and your committee have done brilliant work. i do think that you ruthe risk again of being rendered impotent if you hadn't gotn an approach here with lois lerner and we will pass some legislation later. and at some point it seems to me to have a strategy thatis effective in exerting its well or quit looking badly.

>> in order to do an investigation you have to make certain that you are continuing at your getting all of the information. but it's not s happening within your news cycle. there are other people that were involved. lou: are you suggesting that it has ran ot of sync? >> we knew that there had been a much larger involvement on the irs making certain that we find out who these people are. and we are tracking ts down holdg thse people accountable. both investigative and enforcement agency, is wrong and are going to continue to work on. lou: that's great if you continue that investigation. what are you going too about it? a witness that you had subpoenaed and telling you to buzz off area.

>> i think you guys have heard from him before. as you know. we are continuing with e investigation to find out what other information we have this was orchestrated and wys to compel the testimony. see what. lou: she is seeking immunity. uld you entertain that idea where maxima gasoline on. she's violating the constitutional rights and i dot think anyone should receive immunity w parof that scheme to tell the story of how we didit. we ill find the ople and hold them accountable and whether this president likes it or not. lou: i couldn't agree with yoo more. the question is at what point is there a result. at what point is there a productive and constructive result that is in the interest

of those values and the constitution. >> you can't just quit. you can't just say that we have the answer yet. the administration s not been cooperating. we have been subpoenaing the irs and working on this process and people who testified were getting to t bottom of this. because the president knows that they might quit. lou: one last quetion. i wanted to talk about what are you going to do about the budge cuts for the military? >> this is somhing that is really disturbing. i oppose sequestratio part of the cuts are part of the tenure program. the dod looks out for the uncertainty of the pree to be sequestered and they're looking how to take these cuts in spending drops.

and this is a area that goes right to the heartf our nationals. and we will not only have a week and natural securityut a military that would not be capable to withstand to our adversary. lou: we agree that the cuts are draconian and absolute disaster for the national security. tonight we are startin right now. as you know every year for the mitary to unction we have tw have authorization bills and the funding bills. those are the bis that we are working on right now. we will work through it and are things th need to be reduction and we will take a look at those also congressman mike turner.

they do so much. up next, homesales rising, prices posted thr biggest gains. president and ceo richardsmith in the new new york, we don't back down. we only ow one direction: up so we're up early. up late. thinking up game-changinideas, like this: dozens of tax free zones across new york state. move here. expand here. ortart a new business here... and pay no taxes for 10 years. with new jobs, new opportunities ana new tax free plan. there'only one way for your business to go. up. find out if your business can qualify at start-upny.com

>> hall sas up almost 10 percent the highest since 2008 following disappointing reports recently played being mostly on cold weather here with the outlook is richarsmith the chairman and ceo the parent company of coldwl banker and a century 21. great to have you with us. congratulations on your results. impressive and housing right now people are confused with the mixed signals. what is your outlook?

>> the housing recession retracted and we will not recover in a few years. but it will be a lon recovery process. the example is the numr today. nobody would have predicted that in fact, there would have predicted the opposite. background in economics, environment, whet her the magistrates contributing to a lower forecast. it caught everyo off guard to% year over year on new home sales. existing homes is a different category. we had a great year. i appreciate the recognition. we are prepared for the continuation.

the existing home sales we only give drivers for the first quarter every subsequent quaer we don't live for the year. but based what we have seen how sales will be down in the range of three through 5%. there is a reason. the price will be up 13 or 15% on existing home sales. either bright or wrong sales volume growth, the pri is reacting to a the strong demand. manhattan has literally one month to drive prices. southern california we have weeks. the absence of the inventory is the single greatest concern as to the trend line for the recovery.

lou: with the discuson document, i am absolutely buffaloed as to why the republicans would proceed with this document. start out with 10 rcent surcharge for high-income earners? your initial reaction? >> i applaud the intent. i think the timing is poor. i certainly would not take position like ts before the midterm soar the presidential election. but in the midst of a housing recovery you should not have a discussion that is not conditional to housing or policy. for decades this is in the

economy's best interest to have a discussion about falling back at a te. lou: bubbles of deductibility i find is to defi. >> the effect is four years d throw away brand equity it is punitive to the high income markets with the entire east coast if you take away that deductibility of local real-estate taxes that has a very damaging impact. >> we do know that both parties listen so there is some good judgment. we appreciate it. richard smith. of northern californi couple strike gold letter of the findg $10 billion

period - buried their property. the story when we come back. >> the democratic mid term strategy played republicans for the war on women. we will talk wi their favorite talk-show host about that idea is. and my commentar about the tax reform plan. straight ahead. [ fema announcer ] who are we? we a thinkers. the job jugglers the up all-nhts. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can s, did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owrs. and we're here to help stt yours.

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wage that does adversely affect women at a greater bubble. --edi bigger level so stick to those. lou: do you agree? >> it did work the democrats raised awareness with this messaging but now women are on to that now to expand

that messaging beyond birth control and abortion but economic issues, a minimum-wage. i don't think it will work but they have such an advantage with women that perhaps they don't eveneed the messaging. but t republicans to unter it needs real economic groh targeted to women which they have none. lou: what are you doing about women? with the two-party and the coervatives? >> and i cannot even talk about this. i should just let the women talk. what monica talk with policies and they are affected by energy policy, the board room, at home. also republica don't worry

about the life of julia. brendon can make up their own mind. we have to approach th on policy andhings that matter but that resonates with more than just the war on blended. i am done with that personally i am pro woman and pro america. i will leave it at that. >>. [laughter] that was cute. thanyou. lou: we saw the white flag surrender. [laughter] >> i know when i am outnumred. [laughter] lou: maybe the democrats have something. outcomes the chairman of the ways and means committee to releaswhat congressman turner pointed to have a document to raise taxes to

be disruptive for the republican interest. at are your thoughts? >> don't like it. i think we arell on a slow and steady -- steady slide that is delicate thatushes the envelope. there should be penalties clubs but this document goes a little too far and we need to bmore concerned about the housing recovery to keep us on pace. >> we do need tax reform thathe tax code does need a huge overall even john baker said it it will not happen he incorporated what

obama budget with that trippers -- 10 percent surcharge exchange for loweringhearginal tax rate just llord them across the board or t of corporate tax rate to cut capital gains to have any type of job creation. you will not get that tax overhaul otherwise. lou: what are we looking at with secretary of state telling the russians to be aware of the consequences if they move the military? what is your reaction? >> it is just bluster. what do they affect when it comes to the ukraine? to surrender our way? so reducing the military

talking about pulling back anything of pea through strength or to prevent war. lo thank you for being with us. searching for direction but wi that be? find out next hour chief market strategistnd his forecast coming up and my what super poligrip does for me is it keeps the food out. before those little piec would get in between my dentures and my gum andt was uncomfortable. [ male announcer ] just a few dabs clinically proven to seal out more food particles. [ corrine ] super poligrip is part of my life now.

lou:tocks racing -- erasing earlier gains my next guest says he expects this year toe a validation your. we have our chief market strategist for wrestle investments. this is a peculiar market.

what do you think is in store for the uities markets? >> of high sinnle-digit its as you mentioned the validation means the economic growth in the revenue growth have to be sufficiently good to justify the run visa of last year. lou: preach earnings of the last quarter. n rematch that again? >> the earnings will probably come when analysts will look at and investment managers is revenue. there is a lot of ways that there is not a lot of ggle room so to have pricing power is a challenging environment. we think we will do beer.

lou: i am watching stocks like tesla with a billion and a half dollar offering and i am thinking that is pretty pricey stuff but what do you think as the lead interpreted as a broth? >> you pay for what you get. you lot give the housing profit when you buy not when you sell. look at the united states that is the fairly valued maet. evidence it is cheap but it is neutral so there is not a lot of value. looking at global equities equities, the different sectors of the mket. lou: technology excluding. >> yes as a sector we're under way to technology

evaluations matter so we want to make sure we get our money's worth. i hate to look at netflix stock i have had so many opportunities over theyears not issues roaring. talk evaluations end we are watching $19 billion from sukkurird. [laughter] and i aa trying to find of metric you can say mark zuckerberg says is so he is right here we go so we are in some strange places with the evaluations and multiples, revenue, users. >> we know the long-term driver of the value is earnings outlook to be doing well. but look at a low inflationary environment we have the accommodative chair

who willeee interest rates low for a long time. if we know the of the reserve and theebank of japan will squeeze the yields and investors need to look elsewhere. with that multifaceted space we can get the return. lou: over 30 ds we can get convenonal wisdom that a correction was at hand to no celebrating a global covery. that's his dexterity. >> the markets can change. lou: they got thr right? to make their bilbies some volatility -- there were will be some. there is not a significant correction and that is strange. get the shopping li ready

to know what to buy. lou: we just received a breaking news jan breweras just announced she has vetoed a controversial bill to allow arizona business owners to refuse service to gay people she has vetoed that legislation. up text where republican in the new new york, we don't back down. we only know one direction: up so we're up early. up late. thinking up game-changg ideas, like this: dozens otax free zones across new york ate. move here. expand here. or start a new business here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com

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in washington. chairman dave camp has good intentions with the desire do big things. he unveiled his tax reform proposal as a chairman of the house weens and means committee taxing 10% surcharge on the high income ward -- orders but the leader seemed eager to take on the issue is especially when it means effectively raising taxes and not just on high earners. >> the truth is we should have tackled tax reform years ago. it would be very difficult as we are blocked from the republicans on virtually everything. >> i have no hope for that this year. lou:ohn boehner said if -his is t proposa of the republican party and. >> you are getting a little

ahead ofourself. the chairman will outline a discussion to start t discussion. lou: it seems that camp who may be way ahead of himself in no small measure because it raises taxes whether effectively or three elimination of deductions or surcharges. it contains something for almost everyone including 10 percent surcharge on high income earners making over $400,000 per year. also to cut deductions on mortge interest also tax-freencome on the sale of a whole or deductions for state and local income taxes id eliminate personal exemptions. he may have forgotten this is an important election year for the g.o.p.. his colleagues and a leadership have not. at the least should

overweight for the g.o.p. senate to indulge thoseig ideas or perhapsntil the arrival of a republican president. here are a few of your thoughts tonight. that was a wonderful ought. thank you. we you're giving away copies of "upheaval" to the authors of the comments read riggt here every night.

e-mail lou@loudobbs.com. follow uon twitter or to the facebook page. that is set for us. thank u for bein with u

neil: welcome, everybody. i neil cavuto. do you ever hear something that stis with you? it was a comment last sunday for . >> since president has been in office we have reached the point where cting the annual deficit in half to reduce the overall debt of united states by $3 trillion over the next 10 years. neil: i heard that it stuck with me i immediately said he just out to an allied made i the debt is coming down it will shrink